32) State Street Digital, Inc. started the year with $3,400 in its Estimated Warranty Payable account. During the year, there were $222,000 in sales and $5,400 in warranty repair payments. State Street Digital estimates warranty expense at 2% of sales. The Warranty Expense for the year is: A) $5,400 B) $4,440 C) $3,400 D) $2,440